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Citation:

FEMA-1603-DR-LA; Lafayette Parish; Cajundome Shelter; PW 92

Cross- Eligible Costs
Reference:

Summary:

Lafayette Parish (Applicant) opened a shelter at the Cajundome on August 30, 2005, for disaster evacuees from Hurricane Katrina. The Cajundome is owned by the State of Louisiana through the University of Louisiana at Lafayette (ULL) and is operated by the Cajundome Commission established by an intergovernmental agreement between the Applicant and ULL. The shelter was closed on October 28, 2005. From October 29, 2005 to January 6, 2006, the Commission repaired damages to the facility due to shelter occupancy. PW 92 was prepared to fund costs associated with operating the shelter, including food and supplies, security, utilities, and facility usage fees while the shelter was open. In its first appeal, the Applicant requested additional funding for utilities ($80,934) and usage fees ($1,239,000) incurred during the recovery period. The Regional Administrator approved reimbursement for utilities, but denied funding for usage fees, in the amount of $2,301,000, during both the shelter operations and the recovery period. The denial letter stated that the Cajundome is a government-owned facility and daily usage fees billed through a post-disaster agreement between the Applicant and the Cajundome Commission represent lost potential revenue for the facility, which is not eligible under the Public Assistance program. In its second appeal, the Applicant contended that it does not own or control the Cajundome and usage fees should be eligible as rental costs.

Issues:

Are rental costs for use of the Cajundome eligible for reimbursement?

Findings:

Yes, for the time the facility was actually used as a shelter.

Rationale:

Response and Recovery Policy 9523.15, Eligible Costs Related to Evacuations and Sheltering